Friday, 19 August 2011

What Is the Stock Market

What Is the Stock Market
A stock market or equity market is a public (a loose network of economic transactions, not a physical facility or discrete) entity for the trading of company st0ck (shares) and derivatives at an agreed price; these are securities listed on a st0ck exchange as well as those only traded privately.The size of the world st0ck market was estimated at about $36.6 trillion at the start of October 2008. The total world derivatives market has been estimated at about $791 trillion face or nominal value, 11 times the size of the entire world economy. The stocks are listed and traded on st0ck which are entities of a corporation or mutual organization specialized in the business of bringing buyers and sellers of the organizations to a listing of stocks and securities together. The largest stock market in the United States, by market cap, is the New York Stock Exchange (NYSE). In Canada, the largest stock market is the Toronto Stock Exchange. Major European examples of stock exchanges include the Amsterdam St0ck Exchange, London SE, Paris Bourse, and the Deutsche Börse (Frankfurt Stock Exchange). In Africa, examples include Nigerian SE, JSE Limited, etc. Asian examples include the Tokyo Stock Exchange, the Hong Kong SE, the Shanghai Stock Exchange, and the Bombay Stock Exchange. In Latin America, there are such exchanges as the BM&F Bovespa and the BMV.What Is Sensex in the Stock Market?Nearly all countries that have their own stock market offer an index of some kind to track its overall performance. In the United States, for example, the S&P 500 Index and the Dow Jones Industrial Average are two widely watched indices that investors monitor for indicators of stock market health. The Sensex is a similar index, derived from activity in the Indian market.Indian Stock Market InformationThere are two major stock exchanges in India, and more than 20 regional ones. Both the major st0ck markets, the BSE and the NSE, are located in Bombay, with smaller stock exchanges located in different cities, including Calcutta, Delhi, Chennai, Bangalore and Ahmedabad. In addition to formal markets, there is an OTC (over-the-counter), known as the OTCEI that trades in shares of small and medium enterprises.How to Invest in the NSEThe NSE, centered in Mumbai, is the largest financial market in India and third in the world for volume of shares traded. It has only been open since 1992, so it is a relatively young market to invest in, full of opportunities for risk-taking investors. You may conduct NSE transactions in derivatives, wholesale debt and equity. It isn't necessary to be in India to trade shares on the NSE. You can conduct your transactions through a broker, either online or in person.

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